No matter what precise sort of positive transformation you’d like to implement, there’s always going to be challenges.
But by having the data you need in place and having an action plan to emphasise the positive side of the changes, you’ll be able to carry your organisation with you and see it transformed to good financial health in the long term.
Back it up with data
The first thing to do if you’re in a position to implement a period of positive transformation is to take a data-oriented approach to the problem. Say the company has decided that cutting back on spending is necessary due to a dip in revenues: a data package which draws together accurate information from across the board is wise.
Asking people to submit their own data is not a good move, as this runs the risk of causing manual keying errors. Having the information compiled by a software package, though, leaves little room for mistakes.
Once you have this data to hand, you’ll be able to juxtapose it and work out what is happening where. You might notice, for example, that low salaries in the admin team are causing high staff turnover, and losing the firm more than it makes. Or you might find that the procurement team is locked into expensive contracts above the market rate, and that this is causing a significant cash drain.
And then once you’ve revealed these insights into how departments behave and what the consequences for the overall business are, you’ll be able to go both to the departments themselves and the C-suite and present an honest, rigorous assessment of financial health – and a single version of the truth.
Persevere for the long term
When all is said and done, however, positive transformation does not always go down well with everyone – for a whole host of reasons. Sometimes, the overall health of an organisation does not directly correlate with the interests of a group of individuals within that organisation – and in that eventuality, it’s often the case that there’ll be friction.
As a result, it’s important for a finance leader to remember that the decision has been made with the organisation’s overall best interests at heart. And it’s also important to arm the C-suite and other major decision makers with the data they need to remain convinced of the value of positive transformation for the long term.
Positive transformation can lead to a whole host of scenarios, ranging from redundancies to expansions – and while sometimes it will be welcomed, at other times it will be hated. By using data and other rigorous sources to make your decision, you’ll quickly be able to get your decision made for and stick to it as time goes on.
If you’re in the process of a positive transformation at your workplace, our finance software can help you achieve your goals. Find out more about it here. If you’re keen to read more and see how this positive transformation can take shape in the real world, read or watch one of our case studies.